AX Collar Strategy
AX (Axos Financial, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through Banking Business and Securities Business segments. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate term unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text messaging banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers.
AX (Axos Financial, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $4.71B, a trailing P/E of 9.84, a beta of 1.30 versus the broader market, a 52-week range of 67.5-101.92, average daily share volume of 414K, a public-listing history dating back to 2005, approximately 2K full-time employees. These structural characteristics shape how AX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 indicates AX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 9.84 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on AX?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current AX snapshot
As of May 15, 2026, spot at $83.08, ATM IV 34.20%, IV rank 27.44%, expected move 9.80%. The collar on AX below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.
Why this collar structure on AX specifically: IV regime affects collar pricing on both sides; compressed AX IV at 34.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.80% (roughly $8.15 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AX should anchor to the underlying notional of $83.08 per share and to the trader's directional view on AX stock.
AX collar setup
The AX collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AX near $83.08, the first option leg uses a $87.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AX chain at a 63-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $83.08 | long |
| Sell 1 | Call | $87.50 | $2.93 |
| Buy 1 | Put | $80.00 | $3.25 |
AX collar risk and reward
- Net Premium / Debit
- -$8,340.50
- Max Profit (per contract)
- $409.50
- Max Loss (per contract)
- -$340.50
- Breakeven(s)
- $83.41
- Risk / Reward Ratio
- 1.203
Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
AX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$340.50 |
| $18.38 | -77.9% | -$340.50 |
| $36.75 | -55.8% | -$340.50 |
| $55.12 | -33.7% | -$340.50 |
| $73.48 | -11.6% | -$340.50 |
| $91.85 | +10.6% | +$409.50 |
| $110.22 | +32.7% | +$409.50 |
| $128.59 | +54.8% | +$409.50 |
| $146.96 | +76.9% | +$409.50 |
| $165.33 | +99.0% | +$409.50 |
When traders use collar on AX
Collars on AX hedge an existing long AX stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
AX thesis for this collar
The market-implied 1-standard-deviation range for AX extends from approximately $74.93 on the downside to $91.23 on the upside. A AX collar hedges an existing long AX position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current AX IV rank near 27.44% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AX at 34.20%. As a Financial Services name, AX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AX-specific events.
AX collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AX alongside the broader basket even when AX-specific fundamentals are unchanged. Always rebuild the position from current AX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AX?
- A collar on AX is the collar strategy applied to AX (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With AX stock trading near $83.08, the strikes shown on this page are snapped to the nearest listed AX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AX collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the AX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is $409.50 per contract and the computed maximum loss is -$340.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AX collar?
- The breakeven for the AX collar priced on this page is roughly $83.41 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AX market-implied 1-standard-deviation expected move is approximately 9.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AX?
- Collars on AX hedge an existing long AX stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current AX implied volatility affect this collar?
- AX ATM IV is at 34.20% with IV rank near 27.44%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.